Question: A small confectionary store serves take away fruit drinks, operating seven days a week. The daily operating hours is from 7 . 0 0 AM

A small confectionary store serves take away fruit drinks, operating seven days a week. The
daily operating hours is from 7.00AM until 3.00PM. Each fruit drink costs $10 per cup. Past
data shows that on average, 9 customers arrive at the store each hour. The store employs one
staff, and, on average, it takes 4 minutes for the staff member to serve each customer (from
taking the order and the payment as well as making and serving the drink). The hourly salary
of the staff member is $25.(Assume Poisson arrival and exponential service)
Answer the following questions:
a) What is the probability that more than 3 customers are in the store at any one time? (1 mark)
b) Suppose the store manager wants to reduce the probability in sub-question a) by 50%, how
would that decision affect the service rate? Use trial and error to find the answer, and
verify your answer by checking the probability of sub-question a) using the service rates
that are 0.1 above and below your final answer. (1 mark).
c) Assume that customers do not want to wait in a queue for more than 3.5 minutes, what is
the average number of customers that the store would lose per day? (1 mark)
d) Calculate the total time customers spend in the store (from waiting until getting their
order) if the store now takes two options as below:
(i) open another counter which will be served by another staff member with a similar
level of skills to the original staff to perform the full service to customers. (12 mark)
(ii) replaces the current staff member with anautomatic machine that has a service time
(assume normal distribution) of 4 minutes. (12 mark)
e) If the staff member wants to match the average total customers' time in the system that is
achieved by the automatic machine in sub-question d ii), how quickly will the staff
member have to serve each customer? (1 mark)
 A small confectionary store serves take away fruit drinks, operating seven

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